Selling hope, delivering harm

November 2012

FHA has a −$34 billion economic value

The Federal Housing Administration’s (FHA’s) recently released FY 2012 Actuarial Study confirmed the decline in financial condition that FHA Watch has been tracking over the past year. While the Department of Housing and Urban Development (HUD) attempted to downplay the report, the FHA’s economic value is currently −$34 billion given today’s low interest rate environment.

The FHA’s insurance in force has been growing, as have its capital shortfalls. These trends and the FHA’s poor financial condition are cause for significant concern for Congress and taxpayers.